MARKETING CASE STUDYPRESENTATION

BY GROUP 3

BMW’S “COMPANY OF IDEAS” Campaign:

Targeting the “Creative Class”

CASE OVERVIEW

• THE ULTIMATE DRIVING MACHINE.• GOING BEYOND “THE YUPPIES”.• TARGETING THE “CREATIVE CLASS”.• “THE COMPANY OF IDEAS” CAMPAIGN.

QUESTIONS

• CRITICALLY ANYLYSE BMW’S “COMPANY OF IDEAS” CAMPAIGN. DO YOU THINK THAT THIS CAMPAIGN WHICH TARGETED NEW CLASS OF CUSTOMERS WAS NECESSARY, CONSIDERING THE COMPANY’S GOOD PERFORMANCE IN 2005?

• DO YOU AGREE WITH THE CRITICS THAT BMW WAS LOSING ITS SOUL? DISCUSS.

SEGMENT CHANGE

CREATIVE CLASSYUPPIES

• YOUNG URBAN PROFESSIONALS

• UPPER MIDDLE ECONOMIC CLASS

• UPWARDLY MOBILE• AGE GROUP 20 TO 30’S

• SCIENTISTS• ENGINEERS• ARCHITECTS• EDUCATORS• WRITERS• ARTISTS• ENTERTAINERS

WHY SEGMENT CHANGE ?

• ONLY 2 % OF THE CURRENT SEGMENT• 1.6 MILLION BY 2010• RISE OF CREATIVE CLASS PEOPLE• HUGE POTENTIAL FOR NEW MARKET• HIGH COST OF MANUFACTURING• NET PROFIT NOT INCREASING

INNOVATION & CREATION

• AD SHOWS LIEPZIG PLANT WHICH WON ARCHITECTURE AWARD IN 2004

• FLAME SURFACING DESIGNS (BANGLE BUTT)• ENVIRONMENT SENSITIVITY

AD CAMPAIGNPRINT AD

NO

MATCH

AIRBAGS

RISKY

TV AD

OVERTHINKERS

EUPHEMISMS

BENEDICT ARNOLD

ENEMY OF IDEAS

“WE MAKE SURE GREAT IDEAS LIVE ON TO BECOME ULTIMATE DRIVING MACHINES”

MARKETING STRATEGY COMPARISON

OLD

AGE GROU

P

INCOME

NEW

AGE GROU

P

INCOME

LIFE STYLE VALUE

SPERSO

NA.

DEMOGRAPHIC

DEMOGRAPHIC + PSYCHOGRAHIC +

GEOGRAPHIC

SWOT ANALYSIS

STRENGTHS•LEADER IN LUXURY CAR SEGMENT•DYNAMISM IN GROUP•AD CAMPAIGN MATCHES WITH COMPANY BASICS.•STRONG MARKETING CHAIN AVAILABLE IN US.

WEAKNESSES•NET PROFIT AT THE END OF 2005 WAS LOW FOR BMW GROUP•CONFUSION OVER AD•ONLY IN HOUSE STUDY DONE.•HEAVY COST ON PRODUCTION

SWOT ANALYSIS

OPPORTUNITIES

• MARKET CAPTURING THROUGH EMERGING CREATIVE CLASS•REVENUE GROWTH THROUGH NEW SEGMENT

THREATS•LOSS OF OLD BRAND IMAGE & CUSTOMER•CRITISISM FROM EXPERTS AS DEFENSIVE CAMPAIGN•HIGH COST OF NEW AD CAMPAIGN•IMAGE DEPENDENT ON NEW AD COMPANY

LEARNINGS

• NEED FOR SEGMENTATION• CRITERIA FOR SEGMENTATION• TARGETTING THE SEGMENT